Industrial welfare was the first form of human resource management (HRM).

In 1833 the
factories act stated that there should be male factory inspectors. In 1878 legislation was
passed to regulate the hours of work for children and women by having a 60 hour week.
During this time trade unions started to be formed. In 1868 the 1st trade union conference
was held. This was the start of collective bargaining. In 1913 the number of industrial
welfare workers had grown so a conference organized by Seebohm Rowntree was held.
The welfare workers association was formed later changed to Chartered Institute of
Personnel and Development.
Recruitment and Selection
It all started when Mary Wood was asked to start engaging girls during the 1st world war. In
the 1st world war personnel development increased due to government initiatives to
encourage the best use of people.
In 1916 it became compulsory to have a welfare worker in explosive factories and was
encouraged in munitions factories. A lot of work was done in this field by the army forces.
The armed forces focused on how to test abilities and IQ along with other research in
human factors at work.
In 1921 the national institute of psychologists established and published results of studies
on selection tests, interviewing techniques and training methods.
Acquisition of other Personnel Activities
During the 2nd world war the focus was on recruitment and selection and later on training;
improving morale and motivation; discipline; health and safety; joint consultation and wage
policies.
This meant that a personnel department had to be established with trained staff.
Industrial Relations

Consultation between management and the workforce spread during the war. This meant
that personnel departments became responsible for its organization and administration.
Health and safety and the need for specialists became the focus. The need for specialists to
deal with industrial relations was recognized so that the personnel manager became as
spokesman for the organization when discussions where held with trade unions/shop
stewards.
In the 1970s industrial relations was very important. The heated climate during this period
reinforced the importance of a specialist role in industrial relations negotiation.
The personnel manager had the authority to negotiate deals about pay and other collective
issues.
Legislation
In the 1970s employment legislation increased and the personnel function took the role of
the specialist advisor ensuring that managers do not violate the law and that cases did not
end up in industrial tribunals.
Flexibility and Diversity
In the 1990s a major trend emerged where employers were seeking increasing fexible
arrangements in the hours worked by employees due to an increase in number of part-time
and temporary contracts and the invention of distance working.
The workforce and patterns of work are becoming diverse in which traditional recruitment
practices are useless.
In the year 2000, growth in the use of internet meant a move to a 24/7 society. This created
new jobs in e-commerce while jobs were lost in traditional areas like shops. This meant an
increased potential for employees to work from home.
Organizations need to think strategically about the issues these developments raise. HRM
managers role will change as changes occur.

Information Technology
Some systems where IT helps HRM are:
- Systems for e-recruitment;
- On-line short-listing of applicants;
- Developing training strategies on-line;
- Psychometric training;
- Payroll systems;
- Employment data;
- Recruitment administration;
- References;
- Pre-employment checks.
IT helps HR managers offload routine tasks which will give them more time in solving
complex tasks. IT also ensures that a greater amount of information is available to make
decisions.

People Management
In this assignment I will be looking at the role played by the
Personnel Management to Human Resource Management (HRM) for
Sainsbury's and there historic developments. I will also be looking at
how the existing HR function for Sainsbury's could be developed to
work more effectively with the rest of the organisation.
Human Resource Management (HRM) is fundamentally another
name for personnel management. It is the process of making sure
the employees are as creative as they can be. HRM is a way of
grouping the range of activities associated with managing people
that are variously categorised under employee relations,
industrial/labour relations, personnel management and
organisational behaviour. Many academic departments where
research and teaching in all these areas take place have adopted
the title department of human resources management. HRM is a
coordinated approach to managing people that seeks to integrate
the various personnel activates so that they are compatible with
each other. Therefore the key areas of employee resourcing,
employee development, employee reward and employee
involvement are considered to be interrelated. Policy-making and
procedures in one of these areas will have an impact on other areas,
therefore human resources management is an approach that takes a
holistic view and considers how various areas can be integrated.
Many businesses place an emphasis on the importance of
teamwork. A good team consists of people with different skills,
abilities and characters. A successful team is able to blend these
differences together to enable the organisation to achieve its
desired objectives.
An important part of the retention of staff, reducing staff turnover
and minimising absenteeism at work is ensuring that staff are

properly motivated. This is not as easy as it sounds. At first glance,

you might be tempted to think that merely increasing wages is the
way to motivate! Not so. Most thinkers on the subject would argue
that motivation is a far more complex issue than merely 'money'.
If staff are absent from work they are not able to carry out the
functions for which they have been employed. In many businesses,
these functions have to be taken on by someone else - if not, the
customer could suffer. Reducing absenteeism is an important
feature of human resource management. The extent to which
absenteeism affects businesses has been a topical feature. Not only
does absenteeism cause problems, but employers are beginning to
recognise the effects of 'presenteeism' - staying at work when you
are ill or because you believe that in some way your 'presence' will
help boost your promotion prospects. Workers who are tired or ill are
not likely to be as productive as they can be. This stresses the
importance to businesses of promoting a sensible 'work-life balance'
policy in helping the business to achieve its goals.
I understand that Sainsbury's believe that they have a range of
employment policies to ensure that their workforce is as
representative of the wider community as possible. There staff often
have a choice of work arrangements including: part-time, flexible
contracts for retail employees, job share, home working, enhanced
maternity leave/pay, paternity leave, career break schemes for
childcare, special leave for personal development or caring
responsibilities. The company also has an Equality and Diversity
policy, with a Steering Group led by a Board Director to advise the
group. Sainsbury's played a lead role in the Business in the
Community's 'Race for Opportunity' survey in 2001. There is a Fair
Treatment policy for handling grievances and complaints. On
disability issues, Sainsbury's are senior members of the Employers'
Forum on Disability. They also support the Learning Consortium,
helping talented people with disabilities to move into senior
management positions.

Sainsbury's policy is based on a commitment to. Provide workplaces

where all staff feel valued, respected and able to contribute to the
business. Employ a workforce that recognises the diversity of
current and potential customers. Through these pledges Sainsbury's
aim that all staff can work without fear of discrimination,
harassment and bullying and that all colleagues, job applicants,
customers and suppliers should be treated fairly, regardless of:
Race:- colour, nationality, ethnic origins or community
background
Gender:-gender realignment, sexual orientation, marital or family
status
Religious:-or political beliefs and affiliations
Disability
Real or suspected infection with HIV/Aids
Membership or non-membership of a trade union
Differing working patterns such as part time
Age
I believe Sainsbury's Supermarkets employs over 145,000 people. Of
these, 60% are part-time and 40% full-time. 62% of employees are
women.
Sainsbury's motivates there staff by undertaken the following
issues: Save-As-You-Earn scheme for supermarket staff offers chance for
company shares to be bought at a 20% discount
A profit-sharing scheme allows employees to have shares or cash.
Roughly 50% of the company's shares are owned by current or
former staff and it is this scheme that is largely responsible.
Under a staff discount scheme, employees receive a 10%
reduction on products bought from the company.
Long service awards are given to staff with 15, 25 or 40 years'

service.
Also, the company operates performance-related pay and bonus
schemes for middle and senior managers.

Managing change is seen as a key leadership HR function for

Sainsbury's businesses. How to introduce changes that impact on
the whole organisation and the people who work in it is not easy.
There are a number of issues surrounding the process, how to reorganise the operation, motivate staff, change the corporate culture,
change the decision making structure of the organisation, and also
the quality of communication are perhaps the vital ones.
The different types of production methods should be taken in to
account:Job Production: Production that caters for individual requirements,
mostly small-scale production runs of unique or highly individualised
products or services. Such production may be characterised by
highly skilled, labour intensive methods.
Batch Production: Larger scale production runs where the operation
can be broken down into separate activities or batches. Such
production runs may be for a set number of items that serve a
particular need - for example, the production of Easter eggs. Batch
production allows for some flexibility in production - moulds for
chocolate eggs could be used for white chocolate, milk chocolate or
dark chocolate, for example.
Flow Production: Large-scale volume output produced where the
degree of standardisation of the product is greater (but not
necessarily identical) and the demand for the product is consistent
and long lasting. Such production tends to be characterised by
highly capital-intensive methods.

Lean Production: Production methods that seek to reduce the use of

all inputs into the production process including floor space, labour
time and raw materials. Lean production aims to raise productivity
and reduce waste to a minimum. Lean production is also associated
with improvements therefore in quality, reliability (in delivery and of
the product or service itself), and in the time from the initial order to
the delivery - the lead-time.
Cell Production: An approach to production that groups production
into cells with each cell taking responsibility for the production of
that product. The steps needed to produce the product are analysed
carefully - often by those involved on the 'shop floor' rather than
management - and plans made to ensure that efficiency in
production is maximised. Cell production is also associated with
team production where each team takes on a greater degree of
responsibility for the design, production and budgeting of the
product concerned.
The heads of major corporations and business - are often accused of
earning obscene amounts of money. One argument in support of
such large sums is that these people have a skill that is so rare that
to secure this skill, large sums are required and, in terms of the
performance of the company, fully justified. The skill that is in such
short supply is the ability to manage large-scale change.
Human nature tends to view change with a degree of suspicion; it is
unpredictable, exciting, unnerving and we do not know where it will
lead. As a result, the Human Resources implications in bringing
about change to a production process such as that in the case study
can be massive and highly unpredictable. To manage such change,
people throughout the organisation need to be given a clear vision
of where the company is going, they need to be convinced that the
vision is for the ultimate benefit of all, that the vision is capable of
being implemented and that those involved are going to be

consulted and feel part of the vision and the process that will bring
about that change.
Successful leaders do not impose change - they take others along
with them on the change process, convincing them of the
righteousness of the process and the goal. The ability to combine all
the skills of people management, communication, drive, energy, and
enthusiasm whilst maintaining a guiding hand in the overall
direction of the change are skills that few people have.
One key feature of managing change is to have trust in the
workforce. Traditional UK working practices suffered from poor
industrial relations; change was viewed as a means by which
management could reduce costs and increase profits and their own
wealth and status at the expense of workers; there always appeared
to be a hidden agenda as far as the workforce were concerned,
partly because they simply did not know enough about the purpose
of the change and the process by which the change would be
brought about.
The improvements of Personnel Management could be by allocating
responsibility to employees with the aim of promoting technical,
methodological and personal competences. This increases
motivation, identification with our company and ultimately promotes
the success of each individual as well as that for the entire
organisation itself. Intensive personnel development is the logical
prerequisite to our pronounced customer orientation. In order for our
trade to be oriented towards the customer we should require our
employees to be highly flexible with regard to further career
development and further education. We should also involve our
employees in this development process from day one. Initially, this
means participating in a programme to integrate new employees. In
subsequent years, we offer further education projects. This enables
employees to keep already acquired knowledge up-to-date. We also
provide special programmes which equip employees to undertake

executive duties.
Also One of the common problems that new managers and
supervisors experience is no clear, strong sense whether their
employees are really being effective or not. The first step toward
solving this problem is to establish clear performance goals.
Creating goals would:1. Provide clear direction to both supervisor and employee
2. Form a common frame of reference around which the supervisor
and employee can effectively communicate
3. Clearly indicate success, and can facilitate strong sense of
fulfilment for employee and supervisor
4. Help clarify the roles of the supervisor and employee.

NTRODUCTION.
=============
This assignment traces the history of Human Resource Management from
the Industrial Revolution in the 18th century to present times.
The assignment discusses key periods and movements in this field and
expands on their contribution to modern Human Resource Management.
In discussing the history of Human Resources Management it is
important to offer a definition of the subject. Human Resource
Management can be described as "The comprehensive set of managerial
activities and tasks concerned with developing and maintaining a
qualified workforce - human resources - in ways that contribute to
organisational effectiveness." (DeNisi and Griffin, 2004)

A HISTORICAL REVIEW.
====================
The Industrial Revolution.
The momentum for the industrial revolution grew through the 17th
century. Agricultural methods were continually improving, creating
surpluses that were used for trade. In addition, technical advances
were also occurring, for example the Spinning Jenny and the Steam
Engine. These advances created a need for improved work methods,
productivity and quality that led to the beginning of the Industrial
Revolution.

Adam Smith.
-----------

In 1776, Adam Smith wrote about the economic advantages of the

division of labour in his work The Wealth of Nations. Smith (1776)
proposed that work could be made more efficient through specialisation
and he suggested that work should be broken down into simple tasks.
From this division he saw three advantages:
- the development of skills
- time saving
- the possibility of using specialised tools.
Smith's suggestions led to many changes in manufacturing processes.
"every individual necessarily labours to render the annual revenue of
the society as great as he can. He generally, indeed, neither intends
to promote the public interest, nor knows how much he is promoting it.
By preferring the support of domestic to that of foreign industry, he
intends only his own security; and by directing that industry in such
a manner as its produce may be of the greatest value, he intends only
his own gain, and he is in this, as in many other cases, led by an
invisible hand to promote an end which was no part of his intention.
Nor is it always the worse for the society that it was no part of it."
(Smith, 1776)
Adam Smith, considered by many to be the father of Capitalism, also
discussed the Invisible Hand or Laissez Faire approach (this term is
not used in the book but argues the case). "According to the hidden
hand approach, the only responsibility of business is to maximise
profits according to the market principle and within the constraints
of the law. If government interference in business is restricted to a
minimum, society will benefit automatically from the activities of the
business sector." (Rossouw, 1994, pg18).
According to Rossouw (1994) the hidden hand approach lost value when

societies did not benefit automatically from business activity. It was

clear that business could not be relied upon to act in the best
interests of is staff, consumers and the society within which it was
operating.
In 1832, Charles Babbage examined and expanded upon the division of
labour in his work, On the Economy of Machinery and Manufacturers. In
this book Babbage offered, as an advantage to the division of labour,
that the amount of skill needed to undertake a specialised task was
only the skill the necessary to complete the task. Babbage analysed
and documented the manufacture of a pin and broke the process down
into seven elements to illustrate his point. This study became
important to employers in that they only had to pay for the amount of
skill required to complete a task (www.accel-team.com, 2004).

Trade Unions.
------------During the late 1700's and early 1800's governments began to feel
pressure from the working class masses who started to question and
defy the power of the aristocracy. The working class began to form
workplace combinations and trade organisationsto provide a collective
voice for their rights. Governments tried to fight this using
legislation such as the Combination Acts of 1799/1800 in the UK, which
banned everything from meetings to combinations.
"There were also attempts to form general unions of all workers
irrespective of trade. William Benbow (a Lancashire shoemaker), Robert
Owen and many others looked upon trade unionism not just as a means
for protecting and improving workers' living standards, but also as a
vehicle for changing the entire political and economic order of
society. Owen experimented with co-operative ventures and 'labour
exchanges'; both attempts to bypass the existing order of wage
slavery." (Trade Unions Congress, 2004)

Trade Unions were and are still an infuential force, working for
continued economic and social development of workers and societies in
many countries around the world.

Frederick Winslow Taylor.

------------------------F.W. Taylor is considered to be the father of Scientific Management.
In 1911, his seminal work, The Principles of Scientific Management was
published. This book contains four overriding principles of scientific
management:
- Each part of an individuals work is analysed 'scientifically'.
- The most suitable person to undertake the job is 'scientifically
chosen' and is taught the exact way to do the job.
- Managers must co-operate with workers to ensure the job is done in a
scientific way.
- There is a clear division of work and responsibility between
management and workers. (Bloomsbury, 2002)
"Taylor's impact has been so great because he developed a concept of
work design, work measurement, production control and other functions,
that completely changed the nature of industry. Before scientific
management, such departments as work study, personnel, maintenance and
quality control did not exist." (www.accel-team.com, 2004)

The Hawthorne Studies

---------------------

The Hawthorne Studies were a groundbreaking set of experiments

conducted at the Western Electric plant in Hawthorne, Chicago by Elton
Mayo. The studies were conducted from 1927 to 1932 and measured the
relationship between productivity and working environment. The studies
were based on preliminary experiments conducted in 1924 that measured
the effect of lighting on productivity. (Bloomsbury, 2002)
The results of the experiments showed that changes in the environment
did affect productivity, but this was not the sole factor. The workers
considered management to be showing an interest in them and this
improved motivation.
Mayo's studies and the subsequent results were a significant break
from the theories of F.W. Taylor in that the workers were not solely
motivated by self interest. Mayo's research has led to the
understanding that workplaces are more than machine like environments
in that there are social environments and human emotions that require
consideration. Mayo's studies led to the rise of the Human Relations
Movement

The Human Relations Movement

---------------------------The Human Relations movement "argues that people are not just logical
decision makers but have needs for creativity support, recognition and
self-affirmation." (Theworkingmanager.com, 2004).
The movement presents an alternative and opposite approach to
scientific management as it focuses on the individual and not the
task.
The Human Relations movement boasts some of the world's foremost
management thinkers and theories in its ranks:

- Abraham Maslow. The Hierarchy of Needs. Presented in the US

Psychology Review in 1943
- Douglas McGregor. Theory X and Theory Y. Published in the book 'The
Human Side of Enterprise" in 1960.
- Frederick Herzberg. The Hygiene-Motivation Theory. Published in the
book "The Motivation to Work" in 1959. (www.accel-team.com, 2004)

Contemporary Human Resource Management.

--------------------------------------In modern business the Human Resources Management function is complex
and as such has resulted in the formation of Human resource
departments/divisions in companies to handle this function. The Human
resource function has become a wholly integrated part of the total
corporate strategy.
The function is diverse and covers many facets including Manpower
planning, recruitment and selection, employee motivation, performance
monitoring and appraisal, industrial relations, provision management
of employee benefits and employee education training and development.

CONCLUSION
==========
The history of Human Resource Management has progressed through the
ages from times when people were abused in slave like working
conditions to the modern environment where people are viewed as assets
to business and are treated accordingly.
The Human Resource function will have to adapt with the times as staff

become more dynamic and less limited in their roles and bound by a job
description.
In future we may see employees being measured on the value they
contribute to a business and not their cost to the business.

REFERENCES
==========
Accel Team. (2004): "Historical Perspective - Growth of Scientific
Management" http://www.accel-team.com/scientific/scientific_01.html,
03 April 2004.
Accel Team. (2004): "Historical Perspective - Growth of Scientific
Management" http://www.accel-team.com/scientific/scientific_02.html,
03 April 2004.
Accel Team. (2004): "Considering Human Factors - The Human Relations
Approach" http://www.accel-team.com/human_relations/index.html, 04
April 2004.
Bloomsbury. (2002): Business, The Ultimate Resource, London:
Bloomsbury Publishing.
DeNisi, A.S., Griffin R.W. (2004): Human Resource Management, Boston:
Houghton Mifflin.
Rossouw, D. (1994): Business Ethics. A Southern African Perspective,
Halfway House: Southern Book Publishers.
Smith, A. (1776): An Inquiry into the Nature and Causes of the Wealth
of Nations, London; Penguin Books, 1982.

The Working Manager Ltd. (2004): "Human Relations Movement"

http://www.theworkingmanager.com/articles/detail.asp?ArticleNo=180, 04
April 2004.
Trade Unions Congress. (2004): "Timeline"
http://www.unionhistory.info/timeline/1815_1834.php, 04 April 2004

The History Of Human Resources

Management
1. The history of Human Resources management can be traced back to the times immemorial.
The earliest footprint of the HRM can be linked back to selection of tribal chieftains among the
ancient civilisations. From then on development of mankind continued with simultaneously
development of the Human Resource Management. The Chinese are known to be the first to
use employee screening techniques, way back in 1115 B.C and the Greek and Babylonian
civilizations, could be credited with the development of "the apprentice" system ages before the
medieval times. Similarly in the Aryan society, the establishment of Varna System too was a
step towards the establishment of a specialised society based however not on skills but based
on birth criterion.

The Development
2. However, it was the industrial Revolution which gave it the right impetus and brought the
HRM to the forefront of the management studies. The industrial revolution changed the
agricultural based societies into the industrial societies, bringing about large scale influx of
immigrants. Thus paving a way for the new researches and development of new techniques in
the HRM. Initially the concept of Human resources was much centred around social welfare and
improving the productivity. The main aim behind these programs was to assist immigrants in

learning English and acquiring housing and medical care. Also, these techniques used to
promote supervisory training to ensure an increase in productivity.
It was arrival of trade unions in early nineteenth century that revolutionised the theories of the
management. The two feats that were quintessential to the importance of HR were (Accel Team.
(2004)}
(a) The fact that it was the HR department that got the management and the labour unions to
come on common grounds. They basically worked on getting the management to see things
from the labour perspective and grant them medical and educational benefits.
(b) The other was Frederick W. Taylor's (1856-1915) Scientific Management. This book had
tremendous impact on attaining better productivity from low-level production workers.

Defining Human Resources

4. Although there exist numerous definition of the Human Resource Management yet the two
mentioned below are among the most precise ones:
Human Resource Management is a distinctive approach to employment management which
seeks to achieve competitive advantage through the strategic deployment of a highly committed
and capable workforce, using an integrated array of cultural, structural and personnel
techniques
(Storey, 2007)
HRM includes anything and everything associated with the management of employment
relationships in the firm. We do not associate HRM solely with a high commitment model of
labour management or with any particular ideology or style of management
(Boxall and Purcell, 2008)

Evolution of HRM from the Personnel

management.
5. Initially most businesses had predominant unitarist view, and considered Management as the
sole source of authority that safe guards the interest of managers and the workers, where the
trade unions were regarded as interfering in the harmonious relationship. Hence it was
Personnel Management which was practised in general. It was only in 1980s and 1990s that

non unionised companies such as Hewlett-Packard and IBM brought about a fresh approach to
the management by practising HRM. The popularity of the term HRM came to symbolize not
only a belief that major changes in product markets required a fresh management approach, but
also the conservative government reforms of the labour market allowed managers to exercise
an unprecedented degree of strategic choice in shaping organisational employment practises.Stephen Bach ch 1 pg 5- the evolution of HRM. At the heart of the new approach was the belief
that the management of people gives an organisation competitive advantage. This lead to an
evolution of the human resource management from the personnel management.

Contemporary Human Resource Management.

6. In modern day, the Human Resources Management function is as complex as the
organisational structures. It is no longer a case of mediation between the trade unions and the
management and has resulted in the formation of Human resource departments/divisions in
companies to handle this complex function. As reflected by paper developed by, Professor Andy
Smith National Centre for Vocational Educational Research (NCVER),in Supporting vocational
education and training providers in building capability for the future. The Human resource
function has become a wholly integrated part of the total corporate strategy. The function is
diverse and covers many facets including Manpower planning, recruitment and selection,
employee motivation, performance monitoring and appraisal, industrial relations, provision
management of employee benefits and employee education training and development.
7. In more recent years, attention has switched from what practices constitute human resource
management to the broader impact of human resource management and its relationship to the
strategy of the organisation. This has given birth to a whole new concept The Strategic HRM.
All the research evidence now strongly suggests that human resource management has a very
positive impact on organisational performance. A key element in effective human resource
management is its alignment with the strategy of the organisation. Researchers now believe that
it is not enough to simply implement a series of best practices but that human resource
management needs to be tailored so that it fits with the organisation.

Conclusion
8. The history of Human Resource Management has progressed through the ages from times
when the workers were abused in the slave like working conditions to the modern environment
where the people are viewed as assets to business. Infact today the productivity itself is seen as

a by product of a good human resources management. Thus we find that Human Resources
Management will become increasing dynamic in future and this process of evolution will
continue.
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History of Human Resource Management

Posted: January 29, 2013 in Essential For HR
Tags: "hr", history, history of hr, history of hrm, history of human resource, history of
organization, history of recruitment, hrm, human resource, oldest hr, oldest style of
management

In todays world employees has become the most important resources to any company.
Recruitment of effective, efficient and suitable employees can add to the profitability in any
organization substantially. Most companies today practice Human Resource Management

which has a lot of significance in organizational development, employee engagement and

enhance the overall performance of the organization in terms of revenue generation and
help to develop companys brand or reputation.

The modern era witnesses continuous changes in policies by companies in order to develop
and enhance the potentiality of their workforce. Today, a special management department
has been incorporated by organizations to work out factors related to manpower. HRM
(Human Resource Management) has been a concept (In spite of being added as a subject in
management courses only recently) that was utilized ever since human beings started
following an organized way of life. This form of management could be could be found even
during ancient times, when only the best soldiers were recruited in royal armies; or the
best individuals related to a particular job were given preference. Though the HR practices
have gone through a lot of changes but the moral remains the same. A little more on the
history of HRM is given below.

Pre-historic Times
Some of the vital principles of HRM were used in prehistoric times, like mechanisms being
developed for selecting tribal leaders. Knowledge was recorded and passed on to the next
generation about safety, health, hunting, and gathering food.

2000 BC to 1000 BC saw the development of more advanced HR functions. The Chinese are
known to be the first to use employee screening techniques, way back in 1115 BC, while the
Greeks started using the apprentice system in 2000 BC. These practices showed the
importance of selecting and training the right individuals for related jobs.

The Industrial Revolution

The Industrial Revolution, which started in England during the late 1700s AD, brought a lot of
transformation in the practices of production. Hand-made goods were replaced by machinemade goods, cottage industries were replaced by large factories, and small-scale production
gave way to large-scale production. Under the impact of the Industrial Revolution, the US

economy also converted itself from agri-based to industry-based. The new system required
an extremely well-organized structure, and led to recruitment of a large number of people.
Moreover, the Industrial Revolution brought in a huge number of immigrants. To create
employment for all the immigrants, recruitment and management of individuals gained
vitality. The period saw the rise of a special class of managers who were considered higher
than the less privileged employees. This newly developed system created a gap between
the labor force and the bureaucrat or management. With the passage of time, the gap grew
wider and the condition of the lower class deteriorated. As such, there was a blaring need for
human resource management.

Early human resource management, in general, followed a social welfare approach. It aimed
at helping immigrants in the process of adjusting to their jobs and to an American way of
life. The main aim behind these programs was to assist immigrants in learning English and
acquiring housing and medical care. Also, techniques were used to promote supervisory
training that ensured an increase in productivity.

Labor Unions
The plight of the laborers and workers brought Labor Unions into the scene. With the
advent of these unions in the 1790s, power in the hands of the employees multiplied
considerably, and increased at a rapid pace in the 1800s and 1900s. This led to the HR
department having to become more capable in politics and diplomacy. Two feats that were
quintessential to the importance of human resources were that it was the HR department
that got the management and the labor unions to come on common grounds, and Frederick
W. Taylors (1856-1915) theory of Scientific Management. While the first worked on getting
the management to see things from the labor perspective and grant them medical and
educational benefits, the other had tremendous impact on attaining better productivity from
low-level production workers.

The B.F. Goodrich Company were pioneers in designing a corporate employee department to
address the concerns of the employees under a Human Resource Department. National Cash

Register followed suit in 1902, forming a separate department to handle employee

grievances, record keeping, wage management and other employee-related functions. In
1913, the US Department of Labor was framed to promote the welfare of employees. In the
1920s and 30s, Hawthorne studies had a deep impact on the productivity of organizations
which advocated bettering the physical work conditions for the employees. Due to this,
there was a shift in focus from workers efficiency to efficiency through work satisfaction.

The Age of Reforms

Personnel managers started seeing more sunshine since the Wagner Act of 1935, also known
as the National Labor Relations Act. 1935 also witnessed the Social Security Act which
insured old age people after retirement. In 1938, the Fair Labor Standards Act accounted for
minimum wages for laborers.

These enacted laws provided security and also helped in increasing the standard of the
employees. Since then, there has been no stopping in promoting the welfare of workers, and
new and efficient laws have been framed time and again. Thus, with the lapse of time,
human relations became a prominent feature of organizational behavior.

The New Era

Between the 1960s and 1970s, HRM gained momentum after the passing of several acts like
the Equal Pay Act of 1963, the Civil Rights Act of 1964, the Employee Retirement Income
Security Act of 1974 (ERISA), and the Occupational Safety and Health Act of 1970. The
framed laws ensured the safety and protected the rights of employees. It was seen that no
discrimination in any form was committed against the workers or laborers. Laws related to
disabled people were enacted to prevent discrimination of disabled workers under the
Americans With Disabilities Act in 1990.

With the advent of all these acts, corporates placed a lot of importance on human resource
management to avoid plausible law suits. By the end of the 1970s, HRM had taken over the
world! Almost all big and medium-scale industries had a department to manage their

recruitment, employee relations, record-keeping, salaries, wages, etc. Towards the 1980s,
the importance of HR continued to intumesce due to several reasons like an increase in
skilled labor, training, regulation compliance, dismissal, etc. HR managers were tasked with
the challenges of hiring and the firing employees.

Conclusion
Human Resource Management has been given various names throughout its long history.
Since being recognized as a separate and important function, it has been called Personnel
Relations, which evolved to Industrial Relations, then Employee Relations, and finally to
Human Resources.

Today, Human Resource Management has the same importance as other departments in
most companies. In some companies, the HRD, or Human Resource Department, is even
considered more important than other departments. With the constant increase in education
and technology, and frequent fluctuations in economic status and structures, HR remains the
oldest, most mature, and most efficient of all management styles. It quintessentially
underlines the importance of human beings working in any organization.